Azernews.Az

by Alimat Aliyeva

The American company Amazon has announced the acquisition of satellite operator Globalstar in a deal valued at approximately $11.57 billion. The move strengthens the e-commerce giant’s growing presence in the satellite communications sector and intensifies competition with Elon Musk’s Starlink, which currently dominates the low-Earth orbit internet market, AzerNEWS reports.

The deal reflects Amazon’s ambition to build a reliable global satellite infrastructure and significantly expand its low-Earth orbit (LEO) capabilities. Market reaction to the announcement was positive: Globalstar shares rose by more than 9% in pre-market trading, while Amazon stock also saw a modest increase of around 1%.

Under the terms of the agreement, Globalstar shareholders will be offered either $90 in cash per share or 0.3210 Amazon shares, giving investors a choice between immediate payout or long-term participation in Amazon’s space-driven expansion strategy. The transaction will still require multiple regulatory approvals and is expected to close next year, depending on satellite deployment milestones and compliance conditions.

Analysts say the deal could reshape competition in the satellite internet industry by combining Globalstar’s existing infrastructure with Amazon’s technological and financial resources.

Amazon’s broader Project Kuiper remains central to its space ambitions. The company plans to deploy around 3,200 satellites in low-Earth orbit by 2029, with regulatory requirements mandating that roughly half of them be operational by mid-2026. This aggressive timeline highlights how quickly the satellite internet race is accelerating among major tech players.

Currently, Amazon has already placed more than 200 satellites into orbit, forming the early backbone of its planned global broadband network. The company aims to begin commercial satellite internet services in the near future, targeting remote and underserved regions where traditional connectivity is limited or unavailable.

Interestingly, the satellite internet sector is increasingly becoming a “second space race” of the digital age. While SpaceX has a major head start, Amazon’s entry — backed by enormous financial resources and cloud computing expertise — could eventually turn orbit into one of the most competitive infrastructure battlegrounds of the 21st century, alongside cloud computing and artificial intelligence.